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Jumia, perhaps the leading e-commerce website in Africa is under the worst publicity it has ever gotten right now. Before we get into that, did you know that its April 12 IPO raised $196 million for Jumia after selling 13.5 million shares at $14.50 per share?

Well, it did and that is no small amount by any stretch of the imagination. That is why it saddens us to write that the U.S.-based investments fraud investigator Holzer & Holzer is after Jumia’s neck.

We recently posted on Citron Research calling Jumia out on being a fake and fraud; more of that here. The dust has not settled from that revelation, and now it is emerging that Holzer & Holzer has taken up the Jumia case and is investigating for possible fraud and deception by the company’s top managers.

Some of the possible accusations being leveled against Jumia include padding finances prior to the listing, understating their order cancellations and returns. When news broke out that Jumia is being investigated by Holzer & Holzer, the company’s share price at the NYSE fell to $24.50. That is half of the prize of its shares at the peak of its short trading at the NYSE.

There are allegations saying Jumia understated the number of cases where customers cancel orders midway or completely reject the product. Such information is critical and might have swayed the decision of enlisting Jumia at the NYSE or perhaps have its shares selling at different prices.

Holzer & Holzer is currently reviewing complaints from the investors who had already bought the Jumia shares.

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